The Truth about Wyoming LLCs | Mark J Kohler | Tax & Legal Tip - YouTube

Hi Mark

Kohler here with another tax and legal tip I want to talk about the wyoming corporation or lLC now these are awesome for asset protection

But they're also oversold so I want to break down some of the good a little bit of the bad

And then tell you where I really like to use the wyoming in it

Okay, the first benefit of a Wyoming entity is the Cope protection now

What cope stands for is charging order Protection entity now?

I whole chapter on my book on Cope entities

But there's only about 13 to 15 states around the country that have this type of protection

let me tell you what it is if you set up a

LlC for your rental property and something goes wrong and

Your tenants licken the mold off the wall or they fall down the stairs

You know because of you know termites or something can they sue you personally? Oh, you're protected

That's the beauty of the lLc. If there's a problem inside the lLC. You're protected, but you

but what happens if you are at a lawsuit heaven Forbid

Texting and driving and someone comes after you can they bust into your lLC and take away your rental in most states they can

But with the charging order protection entity but gee there's outside protection

They can't get into the lLC and take away your rental your rental is

Protected with this coat protection a judge will only give a charging order

That any money that comes out goes to the creditor. That's the charging order protection. They can't get the asset

They only get money if money comes out and are you ever gonna distribute money you're not well?

why don't mean is one of these entities, and they give charging order protection if it is a

Single-Member, LLC, and that's the only state in the country right now. That's awesome

So wyoming entities are great for this quote protection the second benefit of a Wyoming entity is privacy

Because if you ask me to set up your wyoming LLC

I can set it up as the incorporator at the law firm I can even use our mail forwarding address service

So your address doesn't show up anyway. This is pretty cool

So your name doesn't pop up on public record in wyoming for at least a year

At the one-year mark you have to disclose who the manager of the is of the lLC is but not for a whole year

That's huge for privacy protection

Third benefit of the Llc is they're affordable now

I'm gonna come back to the oversell issue in a minute, but you can set up a wyoming lLC for a hundred bucks

we can be your registered agent wyoming for 125 and we can be your mail forwarding for up to three companies for

150 bucks a year so the filing fees are with all that you're still under three or four hundred bucks and then the annual fee

With the state is either 50 or a hundred bucks depending on your sale

So the LLc can be really affordable in wyoming for its initial setup and maintenance a lot cheaper than Nevada which is again

Oversold as well

Now the problem with the wyoming entity is they're oversold too many people get sold into this wyoming entity when they're not even doing

Business in Wyoming, so they got rentals in Georgia, and they're like mark. I need a wyoming entity and I'm like okay now

I've got a registered, Wyoming and Georgia, and if they're just getting started and they don't have a lot of equity in their property

They're paying for two states

And it's just too cost that that brand new investor really doesn't need

But they're oversold again and everybody at every little workshop out there that thinks through a real estate

Legal guru even though they're not lawyers or they're over selling this and it's too expensive

Watch out be careful on overdoing it with a wyoming enemy. So finally let me show you my master diagram here

Here's where I love the wyoming in it

So real quick a lot of times you might have one lLC with multiple properties in it you might have two or three

LlC's with multiple properties

But you have barriers between each one and then you might even have let's make my picture here

Or you might even have a series LLC with little baby subs but you can only do that in a few states

So the series LLC doesn't work for everybody, but when I have a client with a lot of assets

We'll set up a Wyoming energy

And then have baby LlC's in multiple states for their other rentals

Now I get the cope protection of Wyoming and then I get the protection of the LLc's in these multiple states

This could be Arizona. This is Nebraska

This is California, and then we've got Jordan so we got multiple states, but it's one tax return

One LLC, and you're getting charging order, Protection, Wyoming

But I only do this if I have clients with a lot of assets and a lot of rental properties

Now you could probably see why I named this a tax and legal tip and not a 2-minute tip because I sometimes get carried away

Anyway in Summary asset protections for real and it can work, but make sure you have enough passives before you think about this

Wyoming thing folks. Don't give up on your American dream

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